Sterling has climbed above $1.38 for the first time since the Brexit vote this morning.
The pound has been boosted by reports saying Spain and the Netherlands are seeking out a soft Brexit, combined with a relatively benign political climate in Westminster.
Read more: HS2 "not at risk" after Carillion collapses, government says
Meanwhile, consumer price inflation (CIP) data is expected today. If CIP stays above the two per cent target set by the Bank of England, it could give the Monetary Policy Committee room to tighten monetary policy.
However, sterling's success could be limited by the collapse of Carillion, which is expected to have wide-reaching consequences for UK businesses.
William Anderson Jones, head of UK corporate dealing at RationalFX said: "Despite the positive outlook for sterling, investors will be watching the currency closely today as the collapse of construction giant Carillion unfolds.
"With the impact expected to be felt by suppliers and small businesses, analysts will be looking for any signs that it could weigh on the pound in the coming days. With economic data for the end of last year highlighting a slight slowdown in the UK construction sector, it remains to be seen how the collapse might impact on future figures for the sector, and the wider economy.”
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